Eis Brake Parts To Consolidate Operations In Berlin

Incentives Halt Brake Parts Company's Plans To Head South

BERLIN — The state has won a small victory in its push to keep businesses in Connecticut and help them resist the lure of less-expensive operating and housing costs in the South.

EIS Brake Parts, a division of Standard Motor Products, has decided to consolidate its operations in Berlin instead of moving to Virginia. The expansion will save about 450 jobs in the state and bring about 30 new jobs up from Virginia.

"I think it's a very positive sign," said Joseph Brennan, a counsel for the Connecticut Business and Industry Association. "As long as the companies are expanding here it means more jobs. Hopefully, this will really be the start of a more concentrated effort."

EIS will build a 125,000-square-foot addition to its plant on Worthington Ridge in Berlin and close its Middletown plant, which employs about 250 people. Those operations and jobs will move to the Berlin site.

It had been rumored that EIS, which makes brake parts for vehicles, was considering moving to the South. Officials from Berlin stepped in and asked the company to think about expanding in town.

"I think they were impressed how quick the town approached them when there were rumors that this was happening," said Berlin Mayor Robert J. Peters.

"The state finally made the offers that were impressive. They showed this company that the state wasn't just talking about retaining jobs and businesses in Connecticut. They were doing something about it," Peters said.

The town offered EIS an abatement on real estate taxes for the new building during the next five years. The first year the addition is completed the town will forgive 50 percent of the additional taxes, the second year 40 percent, the third year 30 percent, the fourth year 20 percent and the fifth year 10 percent.

The town also will improve roads near the plant to handle the additional traffic and provide sewer service to the expansion.

The state Department of Economic Development will give EIS

money to help build the addition; provide a $150,000 loan for improvements to the site; give EIS a four-year, 100 percent abatement of local property taxes on new machinery and equipment; and let the company borrow from a special fund for the project. The state Department of Labor will assist in the recruitment, screening and training of any new employees.

"We make a pretty impressive package, and businesses make business decisions," said A. Searle Field, deputy commissioner for the Department of Economic Development. "We're taking a pretty aggressive stand, particularly on retaining jobs. Our initial interst [in EIS] was in keeping the jobs in Connecticut."

After negotiating with its unions, the town and the state, EIS decided to stay. "We had a struggle over this," said Daniel Carboni, senior vice president of ignition and brake products for Standard Motor Products of Disputanta, Va., the parent company of EIS. "It was a multifaceted thing, the melding of several factors."

If one factor had gone wrong, it could have sent the company south, he said.

Middletown officials said they were not happy that EIS was closing its local plant, but were relieved the company was staying in Connecticut.

"We recognize the fact they are staying in the Central Connecticut region, and in today's economy, it's vital we keep our people employed," said Lawrence McHugh, president of the Middlesex County Chamber of Commerce. "They're only moving 10 minutes away. We'd like to keep them in Middletown, but glad they're staying in Berlin and not moving to Virginia or Tennessee."

Officials from the United Auto Workers union, Local 372, and the union in Virginia could not be reached for comment.

The announcement of the expansion was made by Gov. Lowell P. Weicker Jr.'s office.

"The governor is very heartened by this," said Avice Meehan, Weicker's press secretary. "The Department of Economic Development is working closely with companies in the state. We're hoping it will bear fruit."

While this is a good sign, said Brennan of the CBIA, there is more to be done.

"It's good that the [Department of Economic Development] has gotten in touch with this company and attended to their needs," Brennan said. But "many companies that leave say they have heard from no one in the state."